As a component of our residential investment strategy, we are pursuing development opportunities in Sunbelt cities that we expect will continue to benefit from positive demographic trends attributable to lower cost of living, industry in-migration, and high quality job creation supporting rent growth.
In 2020 – as the Covid pandemic was accelerating – Phoenix, AZ, was a beneficiary of these migration trends. We identified the opportunity to invest in a shovel-ready luxury multifamily development at a time when Phoenix was experiencing some of the most rapid population and multifamily rent growth in the nation.
Situated on an 8.2-acre site in an urban area, the development is in close proximity to major medical and educational institutions and is a short walk from a Valley Metro Rail stop on Central Ave., making it a highly transit-oriented location attractive to a favorable segment of the market with strong income levels.
Execution
We entered into a joint venture with our long-standing partner, Toll Brothers (NYSE: TOL), to develop the fully-entitled, fully-designed project, thereby substantially reducing risk and accelerating the timeline to completion. The project is the seventh ground-up residential development project that Davis and Toll have undertaken together.
We broke ground on the project in early 2021 and the project was delivered in phases beginning October 2022 with the final phase completed in June 2023.
This project consists of 403 luxury apartment units with an expansive suite of amenities that includes two pools, a large landscaped courtyard, a wellness lounge, dog parks, a rooftop sun deck with views of Camelback Mountain, and a state-of-the-art fitness center.
